Real assets investor Stonepeak has partnered with Malaysian cooling solutions provider KJTS Group to develop district cooling projects.
Stonepeak and KJTS expect to capitalise their MYR1.5bn (€309.5m) venture through capital commitments from both firms along with debt financing as they pursue more than MYR2bn worth of projects per year.
The joint venture will initially seek to invest in a diversified portfolio of district cooling and electricity distribution assets in Malaysia.
Azura Binti Azman, independent non-executive chairman at KJTS, said: “This marks a significant partnership that underscores our commitment to sustainability and energy efficiency, and a transformative milestone, enabling the group to accelerate its growth trajectory while advancing our mission to support the national agenda in reducing carbon emissions.
“Stonepeak represents an ideal partner, bringing important capital, industry relationships, and operational experience in building platforms from the ground up. We look forward to working together to bring dependable, long-term solutions to our customers.”
Hajir Naghdy, senior managing director and head of Asia and the Middle East at Stonepeak, said: “District cooling has become an essential piece of the energy transition in Malaysia and Southeast Asia more broadly, given the region’s rising energy demands, and we are seeing the solution being adopted into national climate action plans for many Southeast Asian countries.”
“By partnering with KJTS, a respected operator in Malaysia with a keen understanding of the technicalities and best practices of district cooling, we are positioned well to address the need for this critical infrastructure head-on.
“We are excited to expand Stonepeak’s portfolio of energy transition platforms within our Asia Infrastructure strategy as the tailwinds in the region remain as strong as ever.”
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